Subscribe to The Daily Upside newsletter for more vivid and insightful business and economic news. It’s completely free and we guarantee you’ll learn something new every day.
UK local businesses are moving from ‘EU Brexit’ to ‘EU exit’. Economy.“
A strong earnings season has brought much of the world into an unexpectedly vibrant headspace this week despite uncertain economic conditions, but the UK is in absolute disrepair from the government’s bankruptcy services on Tuesday. I got a report. Headline? Domestic businesses are closing at a faster pace than at any point since the 2008 financial crisis.
A tale of two economic blocs
Bulls are running in Spain. and France. and Germany. And, well, the rest of the Eurozone. Heck, they even run on Wall Street. But they are nowhere in London. Europe’s shared currency economy shocked analysts and economists a bit on Tuesday when Eurostat released new data showing economic growth in the region to be 0.1% in the fourth quarter of 2022. Instead, a warmer-than-expected winter, falling gasoline prices, and generous government aid have combined to ease the economic burden on people in the region. Growing each quarter, for the full year he increased by 3.5%. This is enough to outpace the growth of both China and the United States.
But the state’s outlook is about as optimistic. Tuesday’s earnings report from his construction giant Caterpillar looked a little mixed on the surface as rising costs and slowing demand in China weighed on margins, but earnings in North America were up. Equipment sales are still very strong. And when the demand to build new things is strong, the logic of financial junkies tends to go awry, as does the health of the economy. Case in point: The Nasdaq 100 lapped his best month since July, while the S&P 500 posted his January best in four years.
Yet Britain remains stuck not only on a literal island, but also on a figurative – albeit rather concrete – economic island.
- Unlike in the US, consumer confidence in the UK has been shaken and the construction industry has been hit hard. A total of 4,143 UK construction companies went bankrupt last year, the most in the industry, according to the report.
- Overall, the total number of corporate bankruptcies registered in 2022 reached 22,109. This is a 57% year-on-year jump and the highest rate since 2009. Now the IMF predicts that the UK will be the only G7 country facing her. Recession in 2023.
Irish Luck: Certainly what worries the British even more is the success of their neighbors and former members of the East. Ireland posted her GDP growth of 3.5% in the fourth quarter of 2022, her highest in the region. Without it, there would have been no growth across the Eurozone.
